WASHINGTON (dpa-AFX) - Emerson Electric Co. (EMR) Tuesday announced its plans to spin off its Network Power business and explore other strategic actions. The spin off will be through a tax-free distribution to shareholders and will result in two separate companies with distinct strategies and investment profiles.
Emerson said it will explore strategic alternatives for its motors and drives, power generation and remaining storage businesses. Further the company plans to conduct a complete review and assessment of its corporate services and structure for alignment with its smaller scale and sharper focus.
The transactions are expected to be completed by September 30, 2016.
Chairman and Chief Executive Officer David Farr said, 'Emerson and Network Power will each have sharper strategic focus, enabling both companies to better allocate resources, incentivize employees and allocate capital to capture the significant long-term opportunities in their respective markets.' Advisors.
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